The Medicare Levy is an amount you pay in addition to the tax you pay on your taxable income.  The current rate is 2% of your total taxable income.  Generally, when your employer deducts PAYG Withholding from your wages it includes an amount to cover the Medicare levy.

Depending on your circumstances, you may be eligible for a reduction or exemption from the Medicare levy – find out more using the links below:

• Medicare levy reduction – https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy/medicare-levy-reduction
• Medicare levy exemptions – https://www.ato.gov.au/individuals-and-families/medicare-and-private-health-insurance/medicare-levy/medicare-levy-exemption

This is different to Medicare levy surcharge, which is an additional levy that can also apply if your taxable income is above the threshold and you don’t have an appropriate level of private health insurance. You can read more about that here.